"The 48-inch diameter pipeline will extend 790 miles
(1,271 kilometers) from the Afghanistan-Turkmenistan border, generally
follow the Herat-to-Kandahar Road THROUGH AFGHANISTAN (emphasis added -ed),
cross the Pakistan border in the vicinity of Quetta, and terminate in
Multan, Pakistan, where it will tie into an existing pipeline system."
They say follow the money. Well, here's the money trail.
Everyone from Hitler on down has wanted the Caspian Sea oil and with the
fall of communism, the international bankers finally got some control
over this resource. The problem is that to get this oil to the West requires
a pipeline that would have to go through Tajikistan, Afghanistan and Pakistan.
But the fundamentalist Muslim governments of this places won't play ball
so...they get another agent like Ho Chi Minh, in this case Osama bin-Laden,
who was funded and encouraged by our CIA to fight the Russians in Afghanistan,
to be the Bugagoo, either by instigation or merely by allowing his attacks.
Then, in the ensuing unthinking surge of patriotism, either US troops
or a UN coalition moves into the area to wipe out the "terrorists"
and install "democratically aligned" governments and, bingo,
the obstacles to the Central Asia Pipeline disappear and the profit line
is increased at only the cost of several thousand human lives, unfortunate
but necessary in this age of overpopulation. It's a grander replay of
the Gulf War but it's still about oil, a commodity dear to the heart of
the Bush family.
Consortium Formed To Build Central Asia Gas Pipeline
October 27, 1997
ASHGABAT, Turkmenistan, - Six international companies
and the Government of Turkmenistan formed Central Asia Gas Pipeline,
Ltd. (CentGas) in formal signing ceremonies here Saturday. The group
is developing a project to build a 790-mile (1,271-kilometer) pipeline
to link Turkmenistan's abundant proven natural gas reserves with growing
markets in Pakistan. The group is also considering an extension of the
line to the New Delhi area in India.
"This is a truly significant step in the development of this project,"
said John F. Imle, Jr., president of Unocal Corporation . Unocal was
appointed by the Government of Turkmenistan to lead the project development
activities and form the gas pipeline consortium. A Unocal subsidiary
will serve as development manager for CentGas. "The interest shown
by major international companies underscores both the attractiveness of
the proposed pipeline and the significant economic benefits it can bring
to the region. This project could be the foundation for a new commerce
corridor for the region -- often referred to as the Silk Road for the
The CentGas consortium will initially include the following companies,
either directly or through affiliates: Unocal Corporation, 46.5 percent;
Delta Oil Company Limited (Saudi Arabia), 15 percent; the Government
of Turkmenistan, 7 percent; Indonesia Petroleum, LTD. (INPEX) (Japan),
6.5 percent; ITOCHU Oil Exploration Co., Ltd. (CIECO) (Japan), 6.5 percent;
Hyundai Engineering & Construction Co., Ltd. (Korea), 5 percent;
and the Crescent Group (Pakistan), 3.5 percent. RAO Gazprom (Russia)
has indicated an interest in signing the consortium agreements formalizing
a 10 percent share in the project in the near future.
The proposed pipeline will carry natural gas from the Dauletabad Field,
in southeastern Turkmenistan at a rate of up to 2 billion cubic feet
per day (20 billion cubic meters per year). The Dauletabad Field has
independently certified reserves of more then 25 trillion cubic feet
(708 billion cubic meters). The Government of Turkmenistan has guaranteed
deliverability of 25 trillion cubic feet (708 billion cubic meters)
of natural gas exclusively for the Central Asia Gas Pipeline. Much or
all of this gas is expected to come from the Dauletabad Field.
The inaugural memorandum of understanding between the governments of
Turkmenistan and Pakistan for the CentGas project was signed in March
"The formation of the consortium is another major milestone achieved
in accordance with the requirements of protocols and agreements previously
signed with the Governments of Turkmenistan and Pakistan," said
Marty Miller, Unocal Corporation vice president responsible for new
ventures in Central Asia and Pakistan.
Miller pointed out that the project still faces significant economic,
political and commercial challenges, such as finalizing mutually acceptable
commercial agreements and agreements with transit countries. "This
project has exceptionally sound economic fundamentals, given the presence
of proven gas reserves in Turkmenistan and the market needs of Pakistan
and India. The Dauletabad Field has produced well over 2 billion cubic
feet per day in the past and is capable of producing that volume today.
With the right development program, the Field will continue to be able
to produce natural gas at this rate long into the future. No other import
project can provide such volumes of natural gas to these markets at a
The proposed natural gas pipeline would stretch from the Turkmenistan/Afghanistan
border in southeastern Turkmenistan to Multan, Pakistan (790 miles,
1,271 kilometers), with a 400-mile (640-kilometer) extension to India
under consideration. Estimated cost of the project is US$1.9 billion
for the segment to Pakistan and an additional US$600 million for the
extension to India. This news release contains forward-looking information,
including projections of future business plans and potential capital
expenditures. Actual results could differ materially from these projections.
CentGas Consortium Members:
Unocal Corporation (U.S.), 46.5 percent
Founded over 100 years ago, Unocal is one of the world's leading energy
resource and project development companies providing regional integrated
energy solutions. Unocal has reserves of more than 9.8 trillion cubic
feet of natural gas equivalent (1.6 billion barrels of oil equivalent)
and major oil and gas production activities in Asia and the U.S. Gulf
Delta Oil Company Limited (Saudi Arabia), 15 percent
Delta Oil Company Limited, a private Saudi-owned company, was founded
by its Chairman and Chief Executive Officer, Mr. Badr M. Al-Aiban. Mr.
Al-Aiban established the original Delta entity in Saudi Arabia in 1978,
and its activities have expanded significantly since its inception.
Today, Delta and its affiliates comprise a diversified group of companies
involved in the energy industry, real estate development, food processing
and packaging, soft drink bottling and distribution, agriculture and
manufacturing. The company's operations extend to Central Asia, South
East Asia and other countries in the Middle East. Delta has developed
a number of strategic alliances in the oil and gas industry. As a member
of the Azerbaijan International Operating Company (AIOC) and the North
Absheron Operating Company Limited (NAOC), Delta and its affiliates
are involved in exploring and developing oil fields in Azerbaijan, as
well as other Central Asian countries.
The Government of Turkmenistan, 7 percent
Since declaring its independence from the USSR on October 27, 1991,
Turkmenistan has looked forward to increasing the economic strength
of the new state. The country has strived to build on its traditions,
values and history to form a political and economic system capable of
increasing the well-being of its people, and strengthening the sovereignty
of Turkmenistan. The leadership of Turkmenistan has met the challenge
of reform head on, and has established many channels for swift economic
development. As an independent state, Turkmenistan has much to offer
to the Central Asian region and the international community. By effectively
using its natural resources, continuing on a path of economic reform
as can be seen in the agricultural industry, and promoting its economic
potential to attract foreign investment, Turkmenistan can be assured
of decades of successful economic growth. The government believes that
by seeking international investment, technological and management support
for its country, Turkmenistan can play a major role as the economic
catalyst for the Central Asian region, and join the world leaders in
the distribution of oil and gas.
Indonesia Petroleum, LTD. (INPEX) (Japan), 6.5 percent
Indonesia Petroleum, LTD. (INPEX), a Tokyo-based company, has been engaged
in the exploration and development of petroleum resources, mainly in
Indonesia, since 1966 in order to ensure a continued stable supply of
energy resources to Japan. With its core activity area in Indonesia,
INPEX is expanding its activities in East Asia, Oceania, CIS, the Middle
East and Africa. INPEX and its subsidiaries are currently producing
280,000 BOEPD equity oil and gas in Indonesia, Australia and UAE.
ITOCHU Oil Exploration Co., Ltd. (CIECO) (Japan), 6.5 percent
ITOCHU Oil Exploration Co., Ltd. (CIECO) was formed in 1972 and is now
involved in the exploration, development and production of hydrocarbons
in Indonesia, U.K. North Sea, Australia, Pakistan, CIS Countries, Yemen,
Oman and Gabon. CIECO is the core company responsible for all Hydrocarbon
Exploration and Production activities within the subsidiaries and associates
of ITOCHU Corporation, the largest trading company in Japan. With maximum
utilization to ITOCHU's worldwide network, CIECO is well placed to continue
to expand its foreign activities in the future.
Hyundai Engineering & Construction Co., Ltd. (Korea), 5 percent
Hyundai Engineering & Construction Co., Ltd. was established in
1947, and its major role was rebuilding Korea's infrastructure. Growing
rapidly during the early 1960s, Hyundai built dams, bridges, buildings
and tunnels, as well as industrial plants that were desperately needed.
Since it launched into the international market in 1968, Hyundai has
taken a place among top global general contractors, with approximately
US$32 billion construction orders through 1996. As the core company
of Hyundai Business Group, Hyundai has set the pace for the Hyundai
Business Group which is now a US$87 billion multi-national conglomerate
specializing in engineering and construction, automobiles, shipbuilding,
robotics, electronics, petrochemicals, aerospace and trading.
The Crescent Group (Pakistan), 3.5 percent
The Crescent Group, in business for more than 50 years, is the premier
industrial and financial conglomerate in Pakistan. More than 35 independent
companies operating across Pakistan form the nucleus of the group and
are leaders in textiles, jute, sugar, engineering, steel, investment
banking, insurance, leasing and software development. The Crescent Group
employs over 15,000 people and contributes to one percent of GNP of
the country and over two percent of market capitalization of Pakistan.
Strategic alliances have helped position the Crescent Group as a leader
in its core businesses, such as textile and textile made-ups. Crescent
is in partnership with some of the most well-known corporations from
the United States and Europe. The Group puts heavy emphasis on keeping
its projects environment-friendly, promotes education, and spends considerably
on the development of human talent in safe working conditions.
International Pipeline Consortium
Six international companies and the Government of Turkmenistan are forming
an international pipeline consortium, Central Asia Gas Pipeline, Ltd.
(CentGas) to develop a natural gas pipeline that will link Turkmenistan's
vast natural gas reserves with the growing markets of Pakistan and possibly
India. This major new source of fuel will supplement indigenous natural
gas supply. An efficient, clean-burning fuel, natural gas can be economically
and safely transported by pipeline over long distances, and priced competitively
with alternate fuels.
Dauletabad Field is one of the largest gas fields in the world. DeGolyer
& MacNaughton, an internationally recognized petroleum engineering
firm, has thoroughly evaluated the field's reserves. These evaluations
clearly show that the field's resources are adequate for project needs,
assuming production rates of roughly 1.5 billion cubic feet of gas per
day (15 billion cubic meters of gas per year) for 30 years or more.
The Government of Turkmenistan has guaranteed deliverability of 25 trillion
cubic feet (709 billion cubic meters) of natural gas exclusively for
this project. Much or all of this gas is expected to come from the Dauletabad
Forecasts based on reasonable gas purchase, sales price and other assumptions
show sufficient demand for the imported gas at prices that support the
project's economic viability. Market analyses indicate that Pakistan's
electric power generation market will be the main consumer of the imported
The 48-inch diameter pipeline will extend 790 miles (1,271 kilometers)
from the Afghanistan-Turkmenistan border, generally follow the Herat-to-Kandahar
Road through Afghanistan, cross the Pakistan border in the vicinity of
Quetta, and terminate in Multan, Pakistan, where it will tie into an
existing pipeline system. Turkmenistan will construct a pipeline that
will link with the CentGas line at the border and stretch approximately
105 miles (169 kilometers) to the Dauletabad Field. A potential 400-mile
(644-kilometer) extension from Multan to New Delhi also is under
consideration. Estimated cost of the project is US$1.9 billion for the
segment to Pakistan, and an additional US$600 million for the extension
The project enjoys strong support from the governments and leadership
of the three countries directly involved and has also attracted the
interest of other countries. Turkmenistan and Pakistan have demonstrated
inter-government support through various memorandums of understanding.
The project offers numerous long- and short-term benefits to the region.
It will link plentiful supplies of clean-burning natural gas with growing
regional markets, employ thousands of local people, foster regional
cooperation, and enhance trade, transportation and communication. The
development of pipeline-related infrastructure also will create opportunities
for economic growth in other industries. In addition to regional advantages,
the pipeline offers specific benefits to the countries involved. Turkmenistan
will reach new markets with its plentiful gas reserves, while Pakistan
gains a reliable source of clean-burning fuel to drive its economic
growth. Afghanistan will earn extensive economic benefits from the pipeline,
both during construction and over the life of the project.
Source: Central Asia Gas Pipeline, Ltd.